Scott Rothstein Expands on His Alleged Dealings With Ted Morse... and Escorts

From the hundreds of pages of transcripts from Scott Rothstein's deposition in Miami is a large section dedicated to the car-dealing Morse family, and specifically, Rothstein's claims about his "best friend" Ted Morse.

A recently filed civil lawsuit alleges Ted Morse had a hand in Rothstein's $1.2 billion Ponzi scheme -- that's where the weird emails come from -- and Rothstein insisted he and Morse were in one some phony deals together.

Rothstein claimed that once he got Morse to start investing and making money with him, Morse knew "very, very quickly...that they were not legitimate deals."

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First of all, Rothstein was asked about the, uh, vernacular Rothstein was using in his colorful emails -- like what Rothstein was talking about when he referenced the "man law account."

"The man law account was an account -- I believe I had one and Ted had one," Rothstein said, according to the transcript. "They were accounts that we 24 placed funds in for the purpose of paying for our extra curricular activities with escorts."

Rothstein went on to explain that the accounts were loaded with "Ponzi funds," and alleged that Morse's account -- which he kept secretly and "used to support his mistresses."

He went on to say that he and Morse were like brothers, adding, "We shared everything from money to women and everything else in between."

Rothstein was asked to clarify language he used in the emails with Morse, in which Rothstein alleged that Morse would loan him money, and Rothstein would gradually send back more money that was scattered over several accounts.

Rothstein was also asked to explain why Morse would seem indifferent as to whether he underpaid or overpaid him on nearly every deal.

"You can generally tell -- this doesn't go just for the Morse deal, but it goes for all the people involved, one of the indicators that you can utilize is their depth of inquiry and their pitching a fit when a payment doesn't come," Rothstein said. "If this was a real deal and there was really money in a trust account someplace, holding the money, you would think that the payments would be made on time all the time, not that they would be reshuffled."

More simply, Rothstein went on to explain, "We were both making a lot of money."

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